Straight Through ProcessingStraight Through Processing (STP) is the solution for data quality management. The need to improve the quality and consistency of reference data is one of the most urgent issues on Wall Street. The Securities Industry Association (SIA) has identified standardization of reference data as one of the building blocks to Straight Through Processing (STP). The transaction discrepancies between systems that share data are a major cause of exception processing or broken trades. According to numbers widely quoted by the SIA and others, more than 30 percent of industry Straight Through Processing problems are related to reference data mismatches and inaccuracies. Furthermore, up to 80 percent of typical bank and brokerage transaction costs are related to handling exceptions, and, on average, 40 percent of exceptions are caused by reference data disparities.
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